by Scott Sowers
The rising costs of property insurance that have been affecting the multifamily housing industry may be leveling off as owners and operators deal with the impacts of natural disasters on their daily operations. While rising property insurance premiums are a familiar issue in the multifamily sector, some owners and operators believe the pressure may be easing.
Firms with properties in various geographic regions are experiencing mixed results, but overall financial improvements in the insurance industry may lead to price drops. An alternative to managing the financial exposure from an overstretched network of insurers could involve systemic reform. To address rising insurance rates, the industry needs a multifaceted approach that includes increased investment in disaster resilience and infrastructure, enhanced risk assessments and possibly regulatory reforms that allow for greater flexibility in underwriting.
Read Scott Sowers’ article in UNITS.